Despite being a popular leisure time activity, gambling for money has been shown to have negative economic and social impacts. This is especially true for the small business sector, where the gambling industry is particularly susceptible to problems with inflation, shop rents and staff retention. There are also issues with illegal gambling.
These impacts are primarily on an individual, interpersonal and community/society level. Although a number of studies have examined the impact of gambling, most have focused on its economic and financial impact. These studies can help policy makers and researchers identify the most cost-effective gambling policies.
Using the “cost of illness” approach to assess the gambling impacts is one way of doing this. It is used in alcohol and drug research, but has also been applied to gambling. This approach assesses the social and economic impacts of gambling through an economic cost-benefit analysis. The positive and negative impacts of gambling are then quantified through a series of weights known as disability weights. These weights represent the burden that a health state has on an individual’s quality of life.
The cost of illness approach has been used to study the socioeconomic impact of pathological gambling. It has also been used to identify the positive impacts of gambling. Using this methodology, it is possible to discover the effects that gambling has on gamblers’ social networks.
Some studies have found that the negative effects of gambling are often associated with reduced social isolation, decreased sense of connectedness and reduced social integration. Among problem gamblers, there are more instances of physical IPV (intimate partner violence), dating violence, and severe child abuse. It is also common for family members to become distressed and feel ashamed about their loved one’s addiction.
The social effects of gambling are often hard to measure. However, studies have indicated that the psychological benefits of gambling can enhance the self-concept of lower-socioeconomic groups. Additionally, some consumers may use gambling to help them deal with other emotional problems, such as boredom. Some of these benefits may be reinforced by the social connections that they develop with fellow gamblers.
A more comprehensive approach to gambling impact assessment is based on a public health perspective. This approach aims to evaluate the harms of gambling in a manner that is sensitive to the range of severity. This assessment method can also be used to determine the best way to decrease the harmful impacts of gambling.
A conceptual model of gambling impact assessment was developed by Williams et al. This model is based on a public health perspective and was designed to be used to develop a more balanced evidence base for the gambling impact.
Unlike the cost of illness approach, which focuses on the negative and positive impacts of gambling, the economic cost-benefit analysis aims to evaluate the overall impact of gambling on society. The economic impact of gambling includes revenue, infrastructure costs, unemployment, inflation, and other financial factors. This financial impact is then measured on an individual, interpersonal and community/society levels.